A company uses a process costing system. Its Welding Department completed and transferred out 100,000 units during the current period. The ending inventory in the Welding Department consists of 30,000 units (75% complete with respect to direct materials and 40% complete with respect to conversion costs). Determine the equivalent units of production for the Welding Department for direct materials and conversion costs assuming the weighted average method.
A. 122,500 materials; 112,000 conversion.
B. 112,500 materials; 130,000 conversion.
C. 130,000 materials; 112,000 conversion.
D. 130,000 materials; 130,000 conversion.
E. 107,500 materials; 118,000 conversion.
Answer: A
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